Rapidly developing technologies are not merely driving innovation. They are also driving an unprecedented demand for energy. Late last year, Majid Al Suwaidi, CEO of climate fund Alterra, boldly stated that, due to the rise of new technologies like AI, energy demand will greatly outstrip our ability to deliver that energy.
Suwaidi stressed that world governments and businesses need to take an “all of the above” approach when it comes to renewable energy.
A comprehensive strategy integrates a balanced approach to energy production and consumption, leveraging a diverse mix of renewable energy resources with traditional fuels to meet growing energy demand while bridging the gap as we transition. This all-of-the-above approach will require the widespread adoption of a range of clean renewable energy sources to complement traditional sources to ensure a reliable supply to power the future of innovation.
Goldman Sachs Research recently estimated that data center power demand will grow 160% by 2030. Addressing this surging demand rapidly and safely requires a full suite of energy solutions, including implementing anaerobic digestion for generating renewable natural gas (RNG), commonly called biogas, at a broad scale.
Diversified Energy Sources
Training AI and machine learning relies on massive computational power. The larger the dataset used to train an AI model, the more computational power and energy required. It is estimated that an AI search takes three times the energy needed to do a Google search.
The specialized hardware needed to process these massive datasets is more power-dense than other processors. The application of AI across industries only increases this usage, as workers, from marketing to manufacturing, utilize AI to assist them in their daily work.
It’s a given that data centers require constant, uninterrupted power. Meeting this demand should not require diversifying efforts to develop environmentally responsible and sustainable energy sources such as wind, solar, geothermal, hydrogen, and biogas. In fact, it should spur eco-friendly innovation to meet the moment.
Building a diverse energy supply is a strong solution to support the future of innovation and increased reliance on data centers. By relying on multiple energy sources, we create a more resilient and reliable energy grid, mitigating the risks of over-dependence on any one source. Intermittent sources of energy such as wind and solar have grown in usage, but more consistent energy sources such as biogas better support data center growth, while reducing environmental impacts. While solar has a reliability rating of 24% and wind at 35%, easily stored biogas is ready for use 24-7 with a reliability rating of 95%.
Digestion Points: Turning Waste into Data Center Power
Anaerobic digestion (AD) is a reliable, safe and efficient process that converts organic waste, such as food scraps, into renewable energy in the form of pipeline-ready RNG for use in existing infrastructure.
By using naturally occurring microorganisms already present in organic waste in a closed-loop system, AD captures the naturally occurring methane that would otherwise be emitted into the atmosphere and turns it into a clean, renewable energy source.
This process primarily uses food waste, preventing it from ending in landfills. Food loss and waste account for 8-10 % of annual greenhouse gas emissions, nearly five times the amount generated by the aviation industry. Advancing the use of AD at a commercial scale can reduce the environmental footprints of data centers and reduce the effects of food waste while providing a reliable energy source.
While AD is still gaining traction as a renewable energy solution in North America, it has been a proven technology worldwide for decades, effectively converting organic waste into sustainable, low-carbon energy. In Denmark, 40% of pipeline gas is RNG, and the country has set a goal of 100% by 2030. Advancements in technology, favorable policy shifts, and increased private investment are accelerating its adoption across the U.S.
Creative Energy Solutions
Key regulatory developments are driving this momentum. The rising costs of landfilling and growing public demand for sustainable solutions are prompting municipalities to explore alternatives like anaerobic digestion. Many state governments, including California and Maryland, are implementing policies to incentivize adoption, including renewable energy mandates, subsidies for AD infrastructure, and bans on organic waste disposal.
These measures can create a fertile environment for investment. Expansion of the biogas industry will require a balanced effort of both public and private dollars. The private sector is ready and willing to invest billions of dollars in infrastructure and job creation. Still, we need to shake loose the federal incentives sitting on the sidelines as we wait for the tax credit incentives to take shape.
As energy demand skyrockets to support technological advancement, such as the proliferation of data centers, creative solutions are required to meet these needs. By taking an all-of-the-above approach to renewable energy, we can meet those needs while ushering in a new wave of clean homegrown energy.
